The common corporate challenge today relates to the changing
environment of the world market. Indeed,
corporate appraisal becomes a necessity for every International corporate
business. Appraising a business organization requires every business units to
be examined and evaluated according to the overall standard of the
organization.
Issues that relates only
to the local or any given national market must likewise be addressed as an
overall case example to prevent further corporate dilemma. Creative ideas will emerge not from the
imagination of the corporate leaders but from the real given business cases of
the different business units of the company.
As such, Jain (2004) formulated a conceptual framework of the scope of
corporate appraisal.
Scope of Corporate Appraisal:
A corporate strategy must accumulate information from the
business units of the conglomerate.
Business units derives from the independent product market operations in
which the company can gather specific market information and will amplify to
other business units.
1. Value Orientation of Top Management- creating value inside
the top level management requires the ideologies and philosophies of the top
level management in accordance to the corporate goal and vision. As a business environment, Value orientation
of the top level management must be clearly defined for a clearer understanding
to its subordinates.
2. Corporate Publics- In a wide business coverage of a given
conglomerate corporate public is also an area of concern were in factual
information must be properly disseminated to the valuable stakeholders of the
whole corporate chain.
3. Corporate Resources- Corporate resources such as cash on
hand, personnel, raw materials for production, infrastructure and facilities,
technical competence, and market strength and knowledge are the fundamental resources
are key tools in the overall corporate market strategy
4. External Environment- reflects to the external market
environment feedback towards the corporate operation. External environment will likewise determine
the absolute market performance and profit.
5. Past Performance of Business Units- can also be utilized
for research purposes and referencing for any corporate business case
analysis. The advantage of utilizing the
business unit’s performance information and records will give the overall
corporate accumulated KMS.
To conclude, PAL Company is one good example of using its
SBU evaluation data for the overall corporate appraisal. The operation of PAL lately reach the
international regions of Europe and the Americas. PAL today are adding more units of their jets
and the international routes as well.
Realizing all these global market growth and the corporate appraisal as
well requires a basic and thorough analysis of its SBU’s
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